Spark Therapeutics’ decision to lay off 337 employees—nearly half its workforce—could inject thousands of square feet of lab space into an already saturated University City market. One prominent landlord is even marketing lab space to office tenants due to the oversupply.

The layoffs span Spark’s locations at the Cira Centre (2929 Arch St.), the Bulletin Building (3025 Market St.), and 3737 Market St. Remaining staff will transition to parent company Roche. While Spark still plans to move forward with its $575 million, 500,000-square-foot innovation center at 30th and Chestnut streets, a spokesperson said it’s too early to determine how the layoffs will affect its current footprint.

If Spark chooses to consolidate, it could trigger a significant rise in sublease availability.

Brandywine Realty Trust, which owns both the Cira Centre and the Bulletin Building, declined to comment, as did Wexford Science and Technology, owner of 3737 Market. Spark is Brandywine’s second-largest tenant, occupying 339,684 square feet—3.2% of its portfolio—according to the firm’s most recent financial report. Only IBM leases more space.

Spark’s average remaining lease term with Brandywine is 92 months, or more than seven years, meaning any real estate changes could have a long tail.

*Article courtesy of Philadelphia Business Journal

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